Spain and Portugal have been particularly vulnerable to money laundering through the real estate sector in the European Union in recent years. Organization for Economic Cooperation and Development’s (OECD) Report on tax fraud and money laundering vulnerabilities involving the real estate sector showed that Spain and Portugal haven’t yet established comprehensive and necessary measures to eradicate or lessen this problem and its link with local corruption. The report also identifies the real estate sector as a key and important facilitating area for money laundering.
Both Spain and Portugal are European Union countries especially chosen for their geographical location as destinations for second homes, having further increased the size of the real estate sector in the Iberian Peninsula. Portugal introduced a Golden Visa programme in 2012, to attract foreign investment in the country. Spain followed in its footsteps the following year.
For further details about Portugal’s Golden Visa programme, please visit Transparência e Integridade’s dedicated webpage.